Newscasts - Nintendo shares slide 11% as Switch 2 momentum fears grow

Nintendo

04/02/2026 11:19

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Source: 'Reuters - Business videos'

Description: Nintendo shares slid 11% on Wednesday as investors fretted about momentum for its flagship Switch 2 gaming device. Ciara Lee reports.

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Video Transcript:

Nintendo shares slid 11% on Wednesday as investors worried about momentum for its flagship Switch 2 device. The Japanese gaming company had on Tuesday reported robust sales for the console during the year end shopping season, though the system is viewed as lacking high profile game titles to drive demand. The Super Mario maker kept its annual net profit forecast at $2.24 billion, which was lower than analysts' estimates. Investor enthusiasm over the prospects for a successor to the wildly popular Switch helped push shares to a record high last year, but they've been sliding since November. Early momentum for the Switch 2 is seen as key for building a user base to ensure the long term strength of the system. Investors are also concerned about what impact rising prices of memory chips will have on Nintendo's margins. The company said the price surge isn't significantly impacting earnings this financial year but could pressure profitability if high prices persist over the long term.